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By Rhonda Abrams for USA TODAY

How did it get to be the middle of January already? Wasn't it just New Year's? Before you know it, summer will be here and where will your business be? Don't let time just slip by. If you want to survive and thrive in the coming year– develop an annual plan for your small business before more of 2011 slips away.

Oh yuck, I hear you say. You're an entrepreneur – you want to be out there doing things, not sitting around writing up a business plan.

But developing an annual plan isn't about writing up a document. It's about planning not writing. In my business, we have an annual planning session, but by the end, we mostly have a whole bunch of flip chart pages where we post the decisions we make – not a fancy document.

Yet it works. My business is here today because I have an annual planning session.

After all, I'm in the publishing business, and in case you haven't noticed, publishing is in trouble. The market for printed books is shrinking dramatically. Yet the business models for making money from ebooks (let alone the technology) are not yet clear. Hundreds of publishers will die. I'm determined not to be one of them.

Fortunately, a couple of years ago – when my company was facing the real possibility of losing half its income – we developed an annual business plan. We all gathered in my home – away from phones and email. We came up with ideas for ways to generate new income. We prioritized those. We looked at what resources we had or needed. We got tough about expenses. We all recognized we'd have to work hard.

As a result, we're still here and we're thriving! I'm not boasting – I'm sharing my firm belief that developing an annual plan has been key to keeping my business alive, and it can help you survive and thrive too.

This year, I strongly urge you to develop an annual business plan. Why? Because the economy of 2011 is an economy in transition. Whenever there's significant change – economically, technologically, sociologically — there are business opportunities and challenges. You want to be in a position to take advantage of those opportunities and prepare yourself for the challenges.

The way to do that? Planning.

Your annual business planning process can be fairly simple. Just set aside a day or two – at least a few hours – get away from the office, store, or workshop – and cellphone and email. Ahead of time, pull together some of your financials, so you can evaluate what's been profitable and where your money goes.

Make up a brief agenda ahead of time. Include:

1. What's been going on in your business the last year or two – what's working, what's not. Which products or services have been profitable, which not? How have your finances been? Are you in debt? Have your personnel resources been overstretched or underutilized?

2. How about your goals? What do you want to achieve? What are your financial goals? Other business goals? Don't forget to value your personal goals and goals for social responsibility.

3. Next, look at the changes potentially – or currently – affecting your business. What's changing in your industry, market, competitive environment. How about technology? Is it affecting customers' buying or shopping practices (such as going mobile or buying over the Internet)? How about operations? Are there new technologies that can help you?

4. Focus on what's working. What are you doing right in your business that makes you money? Can you do more of that? Is that likely to continue or grow in the coming year or is that income stream threatened? Prioritize what's been successful.

5. Brainstorm. What are new products or services you might offer? New markets you might serve with your current products or services? How about new marketing techniques?

6. Get specific and get real. What are some realistic steps you can take to have a healthier business? To attract and keep more customers? Reduce expenses? Make more money?

7. Prioritize. Assign responsibility. Set some deadlines. Turn your goals and ideas into an action plan.

Developing an annual business plan is one of the best recipes for success.

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